M/S F Designers vs. Union Of INDIA
Original PDF →Facts
The petitioner, M/s F Designers, represented by its proprietrix, filed a writ petition challenging an Order-In-Original (OIO) bearing No. 70/JC/B-EAST/2021 dated 27.10.2021, issued by the Joint Commissioner of Central Tax (R-3), and a subsequent recovery notice dated 20.06.2024. The OIO pertains to the tax periods of 2015-16 and 2016-17. The petitioner sought to quash both the OIO and the recovery notice. The respondents are the Union of India and officials of the Central Tax department.
Held
The Court held that the issue in controversy was directly and squarely covered by the judgment of a Co-ordinate Bench of the same High Court in the case of M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax in WP No.11154/2023 & connected matters dated 03.07.2024. Following that precedent, the Court set aside the impugned Order-In-Original and the recovery notice. The matters were relegated to the designated officers to be reconsidered from the stage of the show-cause notice. The petitioner was granted liberty to file pleadings within a reasonable time fixed by the concerned officers. The ratio decidendi is that where an Order-In-Original is challenged and a precedent exists setting aside such orders and remanding the matter for reconsideration from the show-cause notice stage, the same treatment should be afforded to the present case.
Key Issues
1. Whether the impugned Order-In-Original bearing No. 70/JC/B-EAST/2021 dated 27.10.2021, issued by the Joint Commissioner of Central Tax, is liable to be quashed? 2. Whether the recovery notice bearing No. GEXCOM/TAR/D/62/2024-AE dated 20.06.2024 is liable to be quashed? The petitioner argued for the quashing of both the OIO and the recovery notice. The respondents, represented by the Additional Solicitor General and an advocate, also presented their contentions. The judgment notes that several contentions were urged by both sides. The core of the dispute revolves around the validity of the OIO and the subsequent recovery proceedings.
Sections Cited
None explicitly mentioned in the provided text, other than general reference to tax periods.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, the petitioner seeks the following reliefs: “(i) Issue a writ of certiorari, or Writ in the nature of Certiorari quashing the impugned Order-In-Original vide bearing no. 70/JC/B-EAST/2021 dated 27/10/2021 received On 10/07/2024 as per ANNEXURE K bearing No.File No.GEXCOM/ADJN/ST/JC/426/2021-ADJN issued by the Third Respondent for the year 2015-16 and 2016- 17 as at Annexure-G. (ii) Issue a Writ of Certiorari, or Writ in the nature of Certiorari quashing the recovery notice bearing No. GEXCOM/TAR/D/62/2024-AE dated 20/06/2024 at ANNEXURE-H. (iii) Issue any other Writ or Directions deemed fit, in the facts and circumstances of the case, including the cost of the Writ Petition, in the interest of justice and equity.”
Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. NC: 2024:KHC:32764
Though several contentions have been urged by both sides in support of their respective claims, the issue in controversy between the parties is directly and squarely covered by the judgment of the Co-ordinate Bench of this Court in the case of M/s. Central Tax in WP No.11154/2023 & connected matters dated 03.07.2024, wherein it was held as under; "
Accordingly, the following: ORDER In light of observations made above, the writ petitions relating to challenge to show-cause notice, such matters will stand relegated to the officers to be designated in terms of the observations made in para 8 above, at the same stage. Accordingly, such of the petitions at Sl.No.1 to 5 in Column No.1 of the table relating to challenge to show-cause notice are disposed off. Insofar as such writ petitions as detailed in Column 2 of the table relating to challenge to Orders-in-Original, in light of the discussion made above, the Orders-in-Original stand set aside and the matters are relegated to the Officers to be designated to be reconsidered from the stage of show-cause notice. Accordingly, such of the petitions at Sl.No.1 to 35 in Column No.2 of the table relating to challenge to Orders-in-Original are disposed off. The petitioners who are now relegated before the authorities concerned are at liberty to file their pleadings within a reasonable time as may be fixed by the Officers NC: 2024:KHC:32764 concerned. Wherever the matters are pending in appeal in light of the arrangement that is made, petitioners to file a memo for withdrawal of appeal and accordingly, the orders-in-original in question would also receive the same treatment, i.e. be set aside as per the directions made above. Wherever demands have been made pursuant to the impugned orders, such proceedings are also set aside."
Under these circumstances, the present petition is also disposed of in terms of the aforesaid judgment of the Co-ordinate Bench of this Court.
Accordingly, the impugned order-in-original at Annexure-G dated 27.10.2021 and the recovery notice at Annexure-H dated 20.06.2024 are hereby quashed.
Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE
BMC List No.: 1 Sl No.: 42
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.